Must read: BT, UK GDP, China data, ASOS

GLOBAL MARKETS

European markets have opened lower with the FTSE 100 under pressure. BT Group (LSE:BT.A) is at the bottom of the basket, dragged down by a negative broker update. In the UK, gambling companies like Entain (LSE:ENT) are trading lower after Chancellor Rachel Reeves suggested taxes on the sector could rise in the Autumn Budget.

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Elsewhere, UK GDP between July and September last year at the start of the Labour government was revised higher to 0.2%. Focus is on UK PM Keir Starmer’s address today at the Labour Party conference in Liverpool.

Overnight, China’s RatingDog Manufacturing PMI hit 51.2 in September, up from 50.5 in August, beating forecasts to reach a six-month high. However the official PMI still hit 49.8, better-than-expected but still below the 50-boom-bust divide.

In the US, futures are pointing slightly lower on the final trading day of the quarter after Wall Street closed Monday higher and global bond markets rallied. Investors will be looking out for the latest JOLTs employment data out today ahead of Friday’s jobs report.

ASOS

In its full-year trading statement, ASOS (LSE:ASC) said 2025 adjusted EBITDA will come in towards the lower end of the £130-150 million guided range. It also said gross merchandise value (GMV) was lower than expected with group revenue below consensus estimates.

Asos offered a more encouraging outlook for FY26, with earnings and free cash flow projected to meet analysts’ forecasts. However, this did little to soothe traders who are focused on the weak 2025 commentary instead.

Asos is aiming to improve cost efficiencies to combat the weak consumer environment. It has also been trying to get to grips with its issues around excess inventory with a more disciplined approach. Plus, it wants to engage customers via collaborations such as with adidas and its Topshop channels and via its loyalty program in the UK.

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Asos was boosted out of the FTSE 250 this month as its market cap continues to decline. During lockdown it was a stock market winner when online shopping was the only option. But Asos has largely struggled since the post-pandemic high street stores reopened, leaving Asos lagging behind, resulting in the resignation of its former CEO.

Asos is dealing with intense competition from companies like China's Shein which is growing in the UK and high street winner Zara. It has found itself in somewhat of an identity crisis, unsure about what demographic or price point it is targeting. It has also struggled with a large number of returns.

Asos’ shares can’t seem to catch a break – they have tumbled over 9% to hit the lowest level since April, landing the stock down over 40% year-to-date. There is a mixed to negative view from analysts with an average hold recommendation on the stock.